India Becomes Fifth Largest Defence Spender Globally

India ranked as the world’s fifth-largest defence spender in 2025, according to the latest report by the Stockholm International Peace Research Institute (SIPRI). With military expenditure reaching $92.1 billion, India accounted for 3.2% of total global defence spending. This placed the country behind only the United States, China, Russia and Germany. The increase reflects India’s growing focus on military preparedness, border security and defence modernisation amid regional tensions.

Defence Spending Rises by Nearly 9%

India’s military expenditure rose by 8.9% compared to 2024, showing a steady rise in strategic investment. The increase was linked to emergency procurements and stronger operational readiness during Operation Sindoor against Pakistan. Defence forces acquired new systems and equipment to maintain combat preparedness. The revised capital outlay for military aircraft systems also saw a major jump, supporting India’s push for stronger air power and advanced combat capabilities.

Pakistan’s Defence Budget Remains Much Lower

Pakistan recorded an 11% rise in military spending in 2025, reaching $11.9 billion and ranking 31st globally. Despite this increase, India’s defence expenditure remained nearly eight times higher. SIPRI noted that Pakistan’s higher spending was mainly driven by aircraft and missile purchases from China, along with payments for earlier military contracts. This reflects the continued strategic competition between the two neighbouring countries.

Global Military Spending Hits Record High

Worldwide military expenditure reached a historic $2.887 trillion in 2025, marking the highest level ever recorded. The United States, China and Russia together accounted for 51% of global spending. Europe witnessed the sharpest annual increase, with defence expenditure rising by 14% due to the ongoing Russia-Ukraine war and NATO-led rearmament efforts. China, the second-largest spender, increased its military budget by 7.4% to $336 billion.

Important Facts for Exams

• SIPRI stands for Stockholm International Peace Research Institute and is based in Sweden.
• India became the fifth-largest military spender globally in 2025 with $92.1 billion in defence expenditure.
• India remains the world’s second-largest importer of major weapons despite a fall in arms imports.
• Russia’s share in India’s arms imports declined significantly as India increased purchases from France, Israel and the United States.

India Shifts Towards Diverse Arms Suppliers

A separate SIPRI report showed that India’s arms imports fell by 4% between 2016–20 and 2021–25, but the country still accounted for 8.2% of global arms imports. Tensions with China and Pakistan continue to drive defence purchases. India is gradually reducing its dependence on Russia and expanding defence partnerships with Western nations. In the Union Budget 2026–27, the government allocated Rs 7.85 lakh crore for defence, including major spending on fighter jets, submarines, helicopters, missiles, drones and smart weapons systems.